Is a Massive Bitcoin Sell-off Coming?
Nairobi (CoinChapter.com) – May 27,
Bitcoin
The Bitcoin price experienced a dramatic drop due to the transfer of 12,240 BTC ($843.6 million) from a Mt. Gox wallet that once held 140,000 BTC and now still holds 125,651 BTC ($86.6 billion). The Bitcoin sell-off caused a brief panic in the market, causing the price to pull back and trapping retailers. Despite this, Bitcoin has shown resilience and recovery.
An excerpt from Ash Crypto on X.
Mt. Gox, once a leading Bitcoin exchange, suffered a catastrophic hack in 2014 that resulted in losses of more than $450 million and forced its closure. Recent transfers have reignited concerns about the fate of the infamous platform's remaining funds. Blockchain intelligence firm Arkham Intelligence reports that Mt. Gox still holds 137,892 BTC ($9 billion). Recent transfers have reignited concerns about the fate of the infamous platform's remaining funds.
Bitcoin’s resilience is put to the test as the battle between bulls and bears heats up
Despite the initial panic, Bitcoin has shown remarkable resilience, quickly recovering from the May 27 drop caused by the Mt. Gox transfer. As of today, the flagship cryptocurrency is trading at $67,791, down $1.151T in 24 hours and down $4.591T this week.
BTC/USD 1-day price chart. Source:
TradingView
Technical analysts remain bullish, arguing that Bitcoin’s ability to rebound quickly from the sell-off is a testament to its fundamental strength. However, caution remains as the Bitcoin community worries about potential fallout from the Mt. Gox incident.
Bitcoin has encountered significant resistance in the $72,000 to $74,000 price range. This range has been a strong barrier that has prevented several upward attempts. A successful breakout above this resistance could spark a massive rally that has the potential to propel Bitcoin to new highs. However, if the resistance persists, Bitcoin could consolidate or face a minor correction. In this case, the 100-day moving average at $64,700 would act as a critical support level.
Factors that influence Bitcoin prices
Anticipation for the final decision of the U.S. Securities and Exchange Commission (SEC) on the spot Ethereum ETF also influenced the sell-off of Bitcoin. Despite the SEC’s approval of the ETF, the price of Bitcoin did not change significantly. In the past 24 hours, the price of Bitcoin fluctuated between $68,183 and $69,506.
Bitcoin has fallen about 19.59% from its high of $73,750, falling below $60,000 earlier this month. Currently, the market is facing regulatory scrutiny, with the SEC targeting major cryptocurrency players like Consensys. In addition, enthusiasm for spot Bitcoin ETFs is cooling.
The Blackrock ETF saw its first outflow since it began trading in January, with nearly $36.9 million leaving the fund, a sign that even institutional investors are being swayed by market sentiment and fear.